What is outsourced HR?
Outsourced HR involves businesses opting for an external company to manage certain aspects or all of their HR functions. Similar to how they might outsource IT or marketing services. Call Metis HR now on 01706 565332 and discover how we can support your business today!
What HR Functions Can My Businesses Outsource?
Traditionally, larger corporations maintain an in-house HR team, but approximately one-third of small and medium-sized companies now opt for outsourced HR support.
Outsourced HR is usually provided by HR consultancy practices or freelance HR consultants. Services available to small businesses are usually mediation services, advisory services, or support package deals for outsourcing HR.
Outsourced HR packages are generally available for a monthly fee and will relieve you of much your HR administration such as updating contracts and handbooks. Packages for usually include unlimited HR advice – one of the most valuable aspects of the service. Many small business owners would not have access to professional HR advice within their own business.
Outsourcing is as simple as finding an HR consultancy that offers a package or service you find attractive and that fits with what you want to outsource – whether that is some or all of your HR function.
When Is The Right Time To Outsource HR?
A number of small businesses might not choose to outsource HR services, often entrusting HR responsibilities to an internal team member. For example an office manager or someone in the finance department. However, these businesses not only leave themselves vulnerable to legal proceedings if HR procedures haven’t been followed correctly. Looking after HR on top of their days jobs can become extremely stressful for staff.
There isn’t a specific ideal moment to opt for HR outsourcing. However, if individuals within your business responsible for HR aren’t HR professionals, it’s advisable to explore the potential of outsourcing.
What Are The Benefits?
When it comes to HR, businesses typically have two choices: either hire a permanent HR professional to work within the company or opt for HR outsourcing. Alternatively, some businesses adopt a hybrid approach, outsourcing specific highly specialised functions such as disciplinary procedures, mediation, grievances, or appeals.
For a small business, particularly those with less than 50 staff, recruiting an HR professional just isn’t feasible and it’s more common to find small businesses outsourcing their HR.
As mentioned, small businesses are likely to have staff members who double up to deal with HR duties – outsourcing can relieve these people of those duties, freeing them from additional stresses and giving them the time back to focus on their roles.
For the business, outsourcing HR has multiple benefits.
Firstly, outsourcing HR is more cost-effective than hiring a person. HR professionals in the UK earn around £36,710 per annum, on average. For many smaller businesses, they simply can’t afford to recruit qualified, professional staff.
Outsourcing gives you access to the same high level, talented professionals at a fraction of the cost.
The access to talent is another benefit – when you outsource you gain immediate access to a wealth of knowledge, the latest professional practices and of course, the most up to date understanding of employment law.
The legal element is also a strong motivator for outsourcing – your outsourced HR team or advisor will work on your behalf to ensure you are compliant and have the knowledge to protect yourself professionally.
If you have any questions about outsourcing HR for your business, contact Metis HR today.
